Smaller lenders are being crushed by risky mortgage lending practices, but it appears that the big players like HSBC are still making out just fine overall.

Well, when houses sell for over $500,000 for bungalows, and that's the average price for some areas, how are people supposed to afford it?

My g/f and I watch that property flipping show on TLC & are astounded by the prices people buy & sell houses for.. one guy purchased a run-down, moldy house for like $450,000 USD & then put about 20-30k into and sold it for well over 500k... WTF?!!?!? How can people afford it? Well mortgage companies give them the money.. who's surprised when they can't pay?

I totally agree!

I live in SW Virginia and you can get a very fine 3500 sq. ft house custom built for say $250,000 to $350,000. Then you see these shows and a 50 year old 2 bedroom goes for a half million.

Banks must be making a killing on interest only mortgages.